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प्रश्न
"The central bank is the lender of the last resort." Explain.
Central Bank is the “lender of the last resort”. Justify either for or against.
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उत्तर
- Commercial banks can seek financial support from other banks.
- However, other commercial banks may not be able to provide funds to the bank in need. In this situation, the central bank gives funds to a commercial bank through loans or securities purchases.
- It helps to prevent widespread financial panic by stepping in when no other lenders are available.
- Maintaining confidence in the financial sector benefits the economy as a whole.
संबंधित प्रश्न
A bank which is known as bankers bank.
Distinguish between the following:
Current account & Recurring deposit account
Write Short Note on the following:
Types of banks
State with Reasons whether the following statement is TRUE or FALSE:
Central bank (RBI) connot accept deposit from the public.
Give the meaning of Commercial Banks?
Explain the various types of banks based on organization with examples.
Assertion: Central banks control credit.
Reasoning: Commercial banks issue bank drafts.
Public Banks are the banks which are ______.
It carries out the country's monetary policy.
“The central bank is a banker’s bank.” Explain.
Distinguish between saving account and current account.
Give two agency functions of commercial banks.
The ______ of a country serves as the leader of the banking system and the money market.
______ is a Banker’s Bank.
Why was EXIM Bank set up in India?
Which type of bank is called the apex bank of India?
Regional Rural Banks (RRBs) are primarily established to ______.
Development banks like SIDBI and NABARD mainly focus on ______.
Small Finance Banks are mainly designed to serve ______.
